Buying on Margin

- Firstly placing a down payment- Borrowing the rest of the money from the bank or a broker- If the stock market is booming, beneficial because you can gain back the money easier - If the stock market is bad, hard to gain back money and pay back what you owe - After the stock market crash, people could not pay back the banks- Banks went bankrupt; forced to close- People who had money invested in the banks lost the moneyDuring the roaring twenties, people were buying on margin. The stock market was booming, so people were investing all that they had. When the stock market crashed, some people lost everything. Their money invested in the stock markets was gone, and their money kept in the bank was gone.